If you’re a first-time car buyer or your credit is less than perfect, some auto lenders may require you to have a cosigner.
Cosigners must meet specific requirements such as having good credit and a stable income, but having one on your car loan can help your chances of getting approved.
What credit score do you need to buy a car with a cosigner?
In order for your cosigner to be accepted by the bank or lender, the cosigner is usually required to have a good or excellent personal credit rating. Generally, lenders will require a potential cosigner to have a credit rating score of 700 or above.
Does having a cosigner lower your car payment?
Because the lender can turn to the cosigner if you default, they are more willing to take you on as a risk. And depending on your cosigner’s credit and income, banks might even be willing to lower your interest rate, which could save you thousands of dollars over the life of the loan.
Is it easier to get a car with a cosigner?
First and foremost, a qualified cosigner can get a buyer approved for an auto loan when they otherwise don’t meet lender requirements. Or, even if a car buyer can get auto financing on their own with a less than perfect credit score, they can sometimes get a better interest rate if they use a cosigner.
Do co signers need to be employed?
As a result, banks screen their co-signers as thoroughly as they screen the initial borrower. This means, in most cases, that co-signers must have a steady form of income to qualify to co-sign. However, some exceptions exist.
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